Business Guide 2020

BUSINESS GUIDE 2020
CO-FUNDED BY IMPLEMENTED BY
EUROPEAN UNION
This publication has been produced with the assistance of the European Union.
The contents of this publication are the sole responsibility of EuroCham Myanmar
and can in no way be taken to reflect the views of the European Union.
EUROPEAN UNION
3
EuroCham Myanmar Business Guide 2020
EUROPEAN CHAMBER OF
COMMERCE IN MYANMAR
EuroCham Myanmar serves as the voice of European
business in Myanmar. Its main mission is to increase
the presence of European companies in the country
and to facilitate market access particularly for European
SMEs – by advocating for member interests with the
government and organisations in Myanmar, the ASEAN
region and the EU.
With a strong, growing network of partners, EuroCham

offers on-the-ground assistance for European
businesses interested in commercial endeavours in
Myanmar, whether in the form of advocacy, business
services, research or networking.
This report serves as a guide for European small-to-

medium sized enterprises interested in investing in
Myanmar; it starts with a sector overview followed by
entry-level information and relevant contact details.
Please contact us for further information and support.
Yangon, November 2019

Myanmar
and Asia
in Focus
Shanghai
Delhi-Gurugram
Yangon
Bangkok
In partnership with INC Corporate
Services (Thailand) Co., Ltd.
Kuala Lumpur
Singapore
Jakarta
In partnership with Maqdir
Ismail & Partners
With a team of more than 50 European and Myanmar lawyers and internationally trained pro-
fessionals in our office in Yangon, Luther has the competence and expertise necessary to
comprehensively assist and advise our clients on all aspects of corporate and commercial
law as well as regulatory compliance, including:
Legal advice Bookkeeping and accounting

Tax advice Taxcompliance
Incorporation services HR administration and payroll
Corporate secretarial services Payment administration
Our Myanmar clients comprise of international and multinational private investors, MNCs and
SMEs, Myanmar businesses and conglomerates as well as embassies, state owned enterprises,
international development organizations and NGOs.
With 13 European and 7 Asian offices and partner firms, Luther is one of the top addresses among
German commercial law firms. Knowledge of the market in which our clients are active is a prere-
quisite for providing successful advice. That’s why our lawyers and tax advisors, in addition to their
specialized legal knowledge, also focus on advising clients from particular industries.
Luther Law Firm Limited | Luther Corporate Services Limited

Uniteam Marine Office Building,
Level 8, Unit #1, 84 Pan Hlaing Street, Sanchaung Township, 11111 Yangon, Myanmar
myanmar@luther-lawfirm.com | myanmar@luther-services.com
Phone: +95 1 500021 | Fax: +95 1 502852
Legal and Tax Advice | www.luther-lawfirm.com | Corporate Services | www.luther-services.com

5
1. Country Overview 10
1.1 Key Facts 10
1.2 Population 11
1.3 Economic Overview 13
1.4 Foreign Direct Investment in Myanmar 16
2. EU-Myanmar Relations 17
3. Investment Opportunities 20
CONTENTS
4. Financial Sector 22
4.1 Banking 22
4.2 Capital Markets 23
4.3 Foreign Exchange and Exchange Control 25
5. Energy 26
6. Manufacturing 29
7. Transport & Communication 31

7.1 Logistics Infrastructure 31
7.2 Telecommunication 32
8. Real Estate 34
9. Special Economic Zones 35

9.1 Rules of Investing in SEZ 36
9.2 Types of Businesses Prohibited to Operate in SEZ 37
10. Ownership of Businesses 38

10.1 Myanmar Investment Law 38
10.2 Myanmar Investment Commission 39
10.3 List of Business Activities Not Allowed to be Carried Out by 40
Foreign Investors
10.4 Myanmar Companies Law 41
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11. Main Regulations Applying to All Businesses 42

11.1 Intellectual Property Laws 42
11.2 Labour-Related Rules and Regulations 43
11.3 Taxation 45
11.3.1 Corporate Taxation 45
11.3.2 Personal Income Tax 45
11.4 Environmental Laws and Regulations 46
12. Outlook and Challenges 49

12.1 Outlook 49
12.2 Challenges 51
13. Timeline 52
14. Industry Contacts Information 56
References 61
Table 1 Key Facts About Myanmar 10

Table 2 Macroeconomic Benchmarking - ASEAN 13
Table 3 EU-Myanmar Relations Timeline 18
Table 4 Foreign Banks Granted Licenses to Operate in Myanmar 23
TABLES
Table 5 Companies Listed on the YSX 23

Table 6 Procedure For Listing on the YSX 24
Table 7 Sources of Electricity Generation 27
Table 8 Overview of Mobile Usage and Growth 32
Table 9 Myanmar Investment Law - Key Regulatory Amendments 38
Table 10 List of Business Activities Not Allowed to be Carried Out by Foreign 40
Investors
Table 11 Corporate Tax by Type of Company 45
Table 12 Personal Income Tax 45
Table 13 Withholding Tax and Its Applications 46
Table 14 List of European Embassies 60
Figure 1 Map of Myanmar 9

Figure 2 Myanmar’s Total Population 12
Figure 3 GDP and Demographic Trend by States And Regions 12
FIGURES
Figure 4 Real GDP Growth And Contribution to Real GDP 14

Figure 5 Industry Growth Contribution by Sector 14
Figure 6 MMK Inflation Rate 15
Figure 7 Currency Exchange Rate Development Between MMK and USD/EUR 15
Figure 8 Yearly Permitted FDI Inflow 20
Figure 9 Share of Permitted FDI by Sector 21
Figure 10 Electrification Rate in Myanmar 26
Figure 11 Electricity Rate Before And After the Increase in July 2019 27
Figure 12 Approved FDI Into Myanmar 28
Figure 13 Number of Manufacturing FDI Approvals 30
Figure 14 4G Penetration in Asian Capital Cities 33
Figure 15 Timeline of Myanmar’s Political Development 52
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AEC ASEAN Economic Community

ASEAN Association of Southeast Asian Nations
BOT Build-Operate-Transfer
DICA Directorate of Investment and Company Administration
ECC Environmental Compliance Certificate
ECD Environmental Conservation Department
EIA Environmental Impact Assessment
EIB European Investment Bank
ESHA European Small Hydropower Association
ACRONYMS
FIL Foreign Investment Law

FY Fiscal Year
IASH International Association for Small Hydro
IEE Initial Environment Examinations
ILO International Labour Organisation
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
MIC Myanmar Investment Commission
MOEE Ministry of Electricity and Energy
MOREC Ministry of Natural Resources and Environmental Conservation
MOU Memorandum of Understanding
MPE Myanmar Petrochemical Enterprise
MPPE Myanma Petroleum Products Enterprise
NEMC National Energy Management Committee
OSH Occupational Safety and Health
SHP Small hydropower plants
SME Small and Medium Enterprise
UNIDO United Nations Industrial Development Organization
YESC Yangon Electric Supply Corporation
8
The voice of European business

in Myanmar
ADVOCACY BUSINESS SERVICES EVENTS
European Chamber of Commerce in Myanmar

271–273 Bagayar Street
Sanchaung Tsp, Yangon, Myanmar
+95 9 45058 2335
info@eurocham-myanmar.org
www.eurocham-myanmar.org
eurocham.myanmar
eurocham-myanmar
EuroChamMyanmar
9
Figure 1: Map of Myanmar
Kachin
Myitkyina
Tamu
Sagaing Muse
Hakha
Sagaing Shan
Mandalay
Chin
Taunggyi
Tachileik
Magway
Sittwe
Kyauk Phyu
Nay Pyi Taw
Magway Loikaw
Bago Kayah
Rakhine
bago
Kayin
Yangon
Hpa-an
Pathein Myawaddy
Yangon/Thilawa
Mawlamyine
Mon
Ayeyarwady
Dawei
Dawei
Regular Road Tanintharyi

Highway
State Boarder
Port (operational)
Port (planned/under construction)
Boarder-Trade Checkpoint
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1 COUNTRY
OVERVIEW
1.1 KEY FACTS
With a total land area of 676,578 square kilometres, Myanmar is the largest country in mainland Southeast Asia.
It is located between two of the world’s most dynamic economies, China and India, and also shares borders with
Bangladesh, Laos and Thailand. Myanmar’s coast line stretches from the Andaman Sea to the Bay of Bengal, which
provides the country with the potential to be a regional trading and logistics hub. Given Myanmar’s vast areas of
fertile land and rich reserves of natural resources (including hydrocarbons), the country’s main sources of foreign
income are agricultural exports and natural gas exports.
Table 1: Key Facts About Myanmar
Official Name Republic of the Union of Myanmar

Area 676,578 square kilometres
Population 53.0 million (as of 2019)

Administrative Areas Seven Regions, Seven States, National Capital
Capital Nay Pyi Taw
GDP USD 71.21 billion (2018)
Currency MMK (Kyat)

Approve FDI USD 4.2 billion (Fiscal Year 2019)
Top Export Items Natural Gas, Garments, Agricultural Products
Source: IMF-World Economic Outlook Database, 2019

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Nay Pyi Taw has been the country’s capital since 2005 but the former capital, Yangon, remains the country’s
largest city and commercial centre.
Mandalay is the commercial and logistics hub for Upper Myanmar, especially for border trade transactions with
India, Thailand and China.
Of the 19 trade stations located along the borders, Muse and Chin Shwe Haw (along the Chinese border) and
Myawaddy (along the Thai border) dominate cross-border economic activity.
Special Economic Zones were introduced by the previous government and three are currently planned or
partly operational — Kyauk Phyu (in Rakhine State, planned), Thilawa (near Yangon, partly operated) and Dawei
(in the southern Tanintharyi Region, planned).
Two major road networks connect the two commercial hubs, Yangon and Mandalay. The newly constructed
highway only allows passenger vehicles, while an older road is used primarily by trucks for the movement of
goods. There is also a rail network connecting the two cities.
International port terminals remain limited to Yangon (including two at Thilawa SEZ) but there are plans to
develop deep-water ports at Kyauk Phyu SEZ and Dawei SEZ.
There are three international airports, but only Yangon and Mandalay handle freight services. A new
international airport is planned near Bago, 80 kilometres north of Yangon.
1.2 POPULATION
Myanmar’s population as of 2019 is estimated to be 53 million with age groups below 24 years accounting for
45% of the population. As the commercial centre of Myanmar, Yangon accounts for the highest population
density in the country and approximately 15% of Myanmar’s population at 8 million people with approximately
700 people per square kilometre (sq km)i. 40% of the total population is living in the regions Yangon, Mandalay,
and Ayeyarwady. 70% of the population is rural (world average: 44.73%). The average household size for rural
and urban households is 4.3. Myanmar has an adult literacy rate of 93% as of 2013ii, according to the UNESCO
Institute for Statistics.
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Figure 2: Myanmar’s Total Population 2005–2024 (in million)
~0.7% ~0.6%
54.65
54.36
54.05
53.72
53.38
53.02
52.83
52.6
52.3
51.8
51.4
51.0
50.5
50.1
49.7
49.3
49.0
48.7
48.3
48.0
2019F
2020F
2020F
2020F
2021F
2022F
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Figure 3: GDP and Demographic Trend by States And Regions
Population Density in Each State Population (mn) By Each GDP Per Capita (2017)
(Per sq km) State (2017)
Yangon 7.9 Chin 63
Mandalay 6.4 Rakhine 254
Ayeyarwaddy 6.3 Ayeyarwaddy 381
Shan 6.2 Kayin 698

Sagaing 5.5
Sagaing 762
Bago 4.9
Mon 825
Magway 3.9
Tanintharyi 952
Rakhine 3.3
Bago 984
Mon 2.0
Magwe 1.143
Kachin 1.8
Kayah 1.397
Kayin 1.6
Shan 1.460
Tanintharyi 1.5
Legend: Population Density Kachin 1.524
Nay Pyi Taw 1.2
>500 per sq km
200 < x < 500 per sq km Yangon 1.587
Chin 0.5
100 < x < 200 per sq km
Kayah 0.3 Mandalay 1.778
50 < x < 100 per sq km
Less than 50 per sq km 0 2 4 6 8 10 1.000 2.000
Source: Central Statistical Organisation; Myanmar Development Institute, 2019

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1.3 ECONOMIC
OVERVIEW
Myanmar’s growth has been constrained by decades of political instability, unfavourable government decisions,
and isolation from the international community. However, since the Government of Myanmar adopted a series
of political, economic, and administrative reforms in 2011, the country’s growth has expanded rapidly. Successive
governments have pursued market liberalisation, opening up a range of sectors to private businesses and foreign
investment. The easing of sanctions spurred a rush of interest in the country as one of the last Asian frontier
markets. Myanmar has consistently been one of the fastest growing economies in the world over the last decade.
According to the Ministry of Planning, Finance and Industry, the country’s gross domestic product (GDP) expanded
by 6.4% during the transition periodiii and is expected to expand by 6.7% in the fiscal year 2020iv.
Table 2: Macroeconomic Benchmarking – ASEAN
Population Current GDP GDP / Capita GDP Growth

2018 (mn) 2018 (USD bn) 2018 (USD) (2018-2024)
Indonesia 261.9 1,022.4 3,870.6 5.2%
Philippines 106.6 330.8 3,103.6 6.6%
Vietnam 94.6 241.2 2,551.1 6.6%
Thailand 67.8 487.2 7,187.2 3.6%
Myanmar 52.8 68.6 1,297.7 6.8%
Malaysia 32.4 354.3 10,941.8 4.8%
Cambodia 16.2 24.5 1,508.8 6.6%
Laos 6.8 18.4 2,720.3 6.7%
Singapore 5.6 361.1 64,041.4 2.6%

14
Figure 4: Real GDP Growth And Contribution to Real GDP
%
8
6.8 6.6 6.7 6.8
7 6.5
6.0
6
5 3.5 3.2 2.7 2.9

3.2
3.0
4
3
3.0 3.0 3.4 3.4
2 3.0
2.9
1
0
2016 2017 2018 2019 2020F 2021F
Agriculture Industry Services Real GDP Growth
Source: Ministry of Planning, Finance and Industry, 2019; Asian Development Bank, 2019
The fiscal year 2018/19 marks a transition year, as the

period of a fiscal year changes from 1 April until 31 March
to starting on 1 October and ending on 30 September.
Figure 5: Industry Growth Contribution by Sector
7%
18%
75%
Manufacturing Construction Others

(i.e garment)
Source: Asian Development Bank, 2019

15
The GDP growth is based on the industry and service sectors that grew by 10% and 8% respectively in 2019.
Growth in the service sector benefitted from a recent opening of the wholesale and retail market to foreign firms.
The industry sector is dominated by manufacturing, which accounts for 75% of the sector’s output; especially
low-tech labour-intensive manufacturing like garment. The second biggest industrial sector is construction with
an output value of 18% of the total sector output. Agriculture experienced a slow growth of 1.2% due to limited
external demand, mainly from China, and producers’ dependence on volatile input costs such as fuelv.
Myanmar’s currency is the Myanmar Kyat (MMK). As of writing of this guide, one Euro was worth MMK 1,707vi.
The MMK has experienced significant depreciation and volatility, partly due to political instability and trade-deficit
fear over defaulting loans. Inflation has remained high over the past several years, though declined from 7% in
2016-17 to 5.5% in 2017-18vii. In the short-term, inflation is likely to be driven by money-growth, and increases
in food and fuel prices. The World Bank projects inflation to jump to 8.4% in 2018-19, and between 7% to 8.5%
in 2019-20viii.
It is common to use US Dollars for business transactions and salary payments, or transactions involving larger
amounts of money, e.g. to pay for half-year rents, to buy cars, or high-price consumer electronics.
Figure 6: MMK Inflation Rate
9.10%
10.00% 7.26% 7.52% 6.70%
5.94% 6.15% 6.15%
4.62%
5.00%
0.00%
2015 2016 2017 2018 2019F 2020F 2021F 2022F
Source: International Monetary Fund, 2019
Figure 7: Currency Exchange Rate Development Between MMK and USD/EUR
2000
1500
1000
2015 2016 2017 2018 2019
USD EUR
Source: Central Bank of Myanmar, 2019

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1.4 FOREIGN DIRECT

INVESTMENT IN MYANMAR
A series of economic and political reforms were started by the quasi-civilian government since March 2011,
attracting foreign investment into the market. There was a slight decrease in growth rate in 2015, which has since
recovered and is expected to stabilise in the next five years.
With the further relaxation of regulations for foreign investment in Myanmar, a renewed sense of business
optimism led to an influx of foreign firms and strong manufacturing-led economic growth, primarily driven by
foreign direct investment. Myanmar, being one of the last accessible frontier markets in the world, is experiencing
an accelerated pace of development, similar to economic transformations experienced by its Asian peers such
as Thailand and Vietnam.
Foreign direct investment (FDI) is projected to increase as the Government drafts and enforces business-friendly
measures. A new Myanmar Investment Law was enacted in January 2017. The law combines aspects of the
previous Foreign Investment Law of 2012 and Myanmar Citizens Investment Law of 2013, and is aimed partly
at providing more opportunities for foreign firms. Separately, a new Myanmar Companies Law was passed in
2017 and came into effect in August 2018, replacing in part the 1914 Myanmar Companies Act. The new law
aims to strengthen the Myanmar economy by creating a set of clear, transparent, and consistent regulations with
improved corporate governance and accountability.
The Myanmar Investment Law and associated Investment Policy of 2016 both stress the Government’s interest
in responsible business conduct, and ‘responsible and mutually beneficial foreign investment’. Given the still
significant stakeholder and human rights risks for investors in Myanmar, including the impact of ethnic conflict
and the crisis in Rakhine State, as well as the legacies of several decades of military rule, investors would also
be wise to conduct effective responsible business due diligence, using guidance from bodies such as the OECD.
Doing business responsibly will pay competitive dividends in terms of obtaining a strong social license to operate.
17
2 EU-Myanmar
Relations
The European Union (EU) has been a key player in encouraging Myanmar
towards turning the political system into a democracy. The EU enacted
restrictive measures against Myanmar’s military regime and only eased
sanctions once the Myanmar Government commenced democratic reform
processes.
The EU has since been committed to supporting Myanmar’s sustainable

development and economic reform and growth, including through
increased trade with the EU, and European investment. Support has
also been provided to Myanmar’s peace process, political reforms and
democratisation.
Underpinning the EU’s engagement and support are international human

rights standards. Concerning investment and trade, these include the 2011
United Nations Guiding Principles on Business and Human Rights, which
define the responsibilities of business to respect human rights, as well as
to provide remedy where violations occur as a result of their operations.
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Table 3: EU-Myanmar relations timeline
Arms embargo imposed

1990
Suspension of defence co-operation.
Suspension of all bilateral aid other than humanitarian assistance.
1991 Introduced a visa ban against members of the military regime, members of the
Government, senior military and security officers and their family members.
Suspended high-level governmental visits to Myanmar.
Widened visa ban against government officials.

1996
Imposed export ban on any equipment that might be used for internal repression or
1997 terrorism.
List of persons affected by visa ban published.
Imposed a freeze on funds held abroad by persons named in visa ban list.
Suspended sanctions against the Government except for the arms embargo sanction.
2012
Lifted all sanctions except for the arms embargo sanction.
2013 Reinstated Myanmar into the Everything but Arms initiative of the Generalised
Scheme of Preferences (GSP).
Opened a fully-fledged delegation to carry out the EU-Myanmar Task Force.
Began dialogue on an EU-Myanmar Investment Protection Agreement (suspended)

2014 Began EU-Myanmar Human Rights Dialogue (ongoing).
EIB and Myanmar sign a Framework Agreement.

2015 EU takes part in national reconciliation.
A monitoring mission from the EU on human rights and labour rights issues visited
2018 Myanmar in late October.
Launch of a European strategy to strengthen partnership with civil society in
2019 Myanmar
Launch of the ARISE Plus Myanmar Trade-Related Assistance Project
Provision of EUR 241 million to support education in Myanmar
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Arms embargo
In response to human rights violations carried out in Myanmar and lack of progress towards democratisation, the
EU imposed an arms embargo against Myanmar in 1990, which remains in place.
Suspension of defence co-operation, bilateral aid and visa ban

In 1991, in response to the military regime’s lack of progress in addressing human rights violations, the EU
suspended defence co-operation, halted bilateral aid, and imposed a visa ban on military and government
officials and related personnel. High-level government visits from the EU to Myanmar were prohibited. The visa
ban was extended in 1996 to include additional individuals linked to the Myanmar government; the EU Common
Position on Myanmar was adopted the same year, confirming previously imposed sanctions.
Export ban and freeze on the funds of sanctioned persons

In 1997, the EU banned exports of all equipment that might be used for internal repression or terrorist activities. It
also imposed restrictions on funds held abroad by persons under sanctions. In response to Myanmar’s violations
of international conventions on forced labour, the EU suspended trade preferences with Myanmar and effectively
eliminated the Generalised Scheme of Preferences (GSP), which allows less industrialised countries to pay lower
import tariffs on exports to the EUix.
Suspension and lift of sanctions

After the Government of Myanmar enacted various democratic and liberal reforms, the EU suspended most
sanctions against Myanmar. However, the arms embargo remained in place. In recognition of further positive
reforms, the EU lifted most financial and trade sanctions in 2013. The arms embargo is extended annually and
presently remains in force until 30th of April 2020x.
Development support
As Myanmar continued to make progress towards democratisation, the EU provided the Government with
political and economic development support. This includes:
Reinstating Myanmar into the GSP (except for arms), allowing duty-free and quota-free access for the
country’s export products to European nations;
Creating a fully-fledged delegation to resume bilateral relations with Myanmar;
Implementing an EU-Myanmar task force to strengthen Myanmar’s democratisation process;
Deploying an election observation mission during general elections;
Facilitating human-rights dialogues;
Participating in ceasefire agreement talks with armed ethnic groups;
Priority areas for bilateral assistance include: rural development, education, peace-building, and governance
strengthening.
EU-Myanmar Investment Protection Agreement negotiations

The EU and Myanmar have been negotiating a bilateral investment protection agreement since 2013. The
purpose of the agreement is to:
Provide a stable and secure environment for both Myanmar and EU investors;
Protect investors against discrimination;
Ensure investors are treated fairly and equitably;
Ensure investments will not be taken away without fair compensationxi.
However, following ongoing unrest in Rakhine State since August 2017, the EU suspended investment
protection agreement negotiations on 14 September 2017xii.
20
3 Investment
Opportunities
Key sectors for foreign investments include oil and gas, infrastructure, real estate and hotels and tourism.
Approved foreign direct investment (FDI) skyrocketed from about USD 1.4 billion in 2012–13 to just under USD
5.8 billion in 2017–18xiii.
Foreign businesses and joint ventures are now allowed to carry out businesses in the retail and wholesale sector.
The Ministry of Commerce Directive 25/2018 of 9th May 2018, authorised 100% foreign-owned companies as
well as joint ventures between international and domestic investors to carry out retail and wholesale businesses.
The directive contains a minimum capital requirement of USD 5 million for foreign-owned wholesalers and USD
3 million for foreign retailers, excluding the value of land rental. Joint venture wholesale traders – in which the
local partner must have at least a 20% share – require a minimum of USD 2 million in capital, while joint venture
retailers must have at least USD 700,000.
Figure 8: Yearly Permitted FDI Inflow (in USD billions)
Yearly Permitted FDI 2010-2019 (in USD billions)

25
20
15
10
0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Yearly Permitted FDI (2010-2019)
Source: Directorate of Investment and Company Administration, 2019

21
The following chart breaks down realised FDI by sector. The four largest sectors are oil & gas, power,
manufacturing, and transport & communication, which account for 78% of the total FDI inflow. Several key
communications and oil and gas projects contributed to the largest approval totals in 2015 and 2016. For the
construction sector, no official data is available.
Figure 9: Share of Permitted FDI by Sector
FDI by sector (2012-2019)
5%
10%
20%
6%
22% 15%
20%
Oil & Gas Other Services
Transport & Communication Agriculture
Hotel & Tourism Livestock & Fisheries
Real Estate Manufacturing

22
4 Financial
Sector
Myanmar’s banking sector has lagged behind international standards, largely as a result of sanctions that
prohibited international banks from engaging in Myanmar. Due to protracted economic sanctions, the Central
Bank of Myanmar (CBM) and Myanmar’s financial institutions were isolated from global financial markets. The
Government and the CBM have recently taken large strides in developing and implementing reforms to improve
financial services, such as by enacting the Financial Institutions Law 2016.
4.1 Banking
Four new foreign bank branch licenses were issued Since November 2018, foreign banks are also
in 2016, which means that a total of 13 foreign banks allowed to offer retail banking services and provide
now have licenses to operate in the country. The loans in the local currencyxv. However, foreign banks
license for a foreign bank is valid for five years and are currently not allowed to set up subsidiary banks
can be renewed after this period. In 2020, the CBM but can operate solely through bank branches. The
plans to award further banking licenses to foreign CBM is planning to loosen this restriction in 2020
companies. The Central Bank works closely with and allow foreign banks to have full operations.
the German consulting company Roland Berger to Opening the market is expected to strengthen the
evaluate which banks will receive licenses in the third local banking sector, and make more funds available
wave. It has not been decided yet how many licenses for businesses to invest and growxvi.
are to be issuedxiv.
23
The 13 foreign banks with licenses to operate in Myanmar are:
Table 4: Foreign Banks Granted Licenses to Operate in Myanmar
No Name of Bank Country

1 The Bank of Tokyo-Mitsubishi UFJ, Ltd Japan
2 Oversea Chinese Banking Corporation Ltd China
3 Sumitomo Mitsui Banking Corporation Japan
4 United Overseas Bank Ltd Singapore
5 Bangkok Bank Public Company Ltd Industrial Thailand
6 Commercial Bank of China China
7 Malayan Banking Berhad (May Bank) Malaysia
8 Mizuho Bank Ltd Japan
9 Australia and New Zealand Banking Group Ltd Australia

The Joint Stock Commercial Bank for Investment and Development of
10 Vietnam
Vietnam (BIDV)
11 Shinhan Bank South Korea
12 E. Sun Commercial Bank Limited Taiwan
13 State Bank of India India
Source: Central Bank of Myanmar, 2015
4.2 Capital Markets

In 2015, a joint venture between the two Japanese organisations Dawai Securities Group and Japan Exchange
Group, and the state-owned Myanma Economic Bank opened the Yangon Stock Exchange (YSX). Currently there
are five listed companies that have a combined market capitalisation of USD 440.76 millionxvii. Trading frequen-
cy on the exchange is low due to a limited number of listed companies, as well as an underdeveloped service
infrastructure around the local financial market. The Securities and Exchange Commission of Myanmar (SECM)
decided in 2019 to let foreigners, that are resident in Myanmar, purchase stocks on the YSX, though listed
companies can decide how many shares they are willing to sell to foreignersxviii.
Table 5: Companies listed on the YSX
Company Name Industry Listed Date
First Myanmar Investment Public Co., Ltd. (FMI) Investment Holding 25th Mar 2016
Myanmar Thilawa SEZ Holdings Public Co. Ltd. (MTSH) Real Estate Development 20th May 2016
Myanmar Citizens Bank Ltd. (MCB) Banking 26th Aug 2016
First Private Bank Ltd. (FPB) Banking 20th Jan 2017
TMH Telecom Public Co., Ltd. (TMH) Telecom 26th Jan 2018
Source: Yangon Stock Exchange, 2019

24
Myanmar Agro Exchange Public Ltd. (MAEX) is likely to be the next company listed on the YSX in 2020, as the
company has prepared all requirements of a listing. There are 17 requirements that make a company eligible
for an IPO, which include a minimum of MMK 500 million in paid-up capital, at least two years of profits before
the application, using Myanmar Accounting Standards and Myanmar Standards on Auditing for book-keeping of
accounts, as well as the implementation of several corporate governance policiesxix.
Table 6: Procedure for Listing on the YSX
Step Estimated processing time

1) Preliminary preparation n/a
2) Full-scale preparation 6 months
3) Final preparation 4 months
4) Listing examination Min. 7 weeks
5) Offering shares 8 weeks
6) Dematerialisation of issued shares 8 weeks
7) Listing on YSX n/a
Source: Yangon Stock Exchange, 2019
Besides the Yangon Stock Exchange, the Securities and Exchange Commission of Myanmar plans to establish a
market for trading shares of public companies that are not listed on the YSX. A company can opt for a status as a
public company at own inception and without regulation, in order to sell and buy shares of their business ‘under
the counter’. Currently there are 251 public companies registered in Myanmarxx.
25
4.3 Foreign Exchange

and Exchange control
The Foreign Exchange Management Law (FEML) 2012 and the Foreign Exchange Management Regulations 2014
regulate foreign exchange activities.
The FEML defines foreign exchange as “foreign currency and all deposits, credits and balances in any foreign
country or payable in any foreign currency, and any documents or instruments expressed or drawn in Myanmar
currency but payable in any foreign currency.”
The 2013 Central Bank of Myanmar Law defines foreign exchange as:
Foreign currency in cash.
Payment instruments payable in foreign currency cash or payable abroad.
Deposits in intergovernmental financial institutions, central banks, treasuries and commercial banks abroad
Instruments used for the international transfer of funds.
Foreign currency accounts opened and maintained in domestic banks.
Under the FEML, the CBM monitors and records funds that enter the country as foreign investment. Foreign
investors must declare their funds with documentary evidence or risk being prohibited from repatriating funds
abroad. Further, investors must obtain permission from the Foreign Exchange Management Board regarding all
foreign exchange activities, including borrowing and repaying the principal and interest of foreign exchange from
abroad, payments to persons abroad, and opening accounts in foreign banks and remitting profits.
There are a few options to transfer funds in and out of the country.
The 29 domestic banks, including four state-owned and 25 private banks, have formed correspondent
banks abroad for international remittances. Most of the correspondent banks are in Asia and Europe. In
cases where a correspondent bank is not present in a given country, remittances are carried out through
a third-party intermediary bank.
International remittances can be conducted through international money transfer networks, such as
Western Union, Money Gram and Xpress Money, and increasingly through fin-tech solutions.
Several local banks offer trade financing services of Letter of Credit issuance; they include CB Bank, KBZ
Bank, AYA Bank and YOMA Bank.
26
5 Energy
While Myanmar has succeeded in attracting significant foreign investment leading to rapid industrialisation, it
has received limited private investment in energy infrastructure to keep up with rising demand. Consequently,
meeting the country’s power demand remains a substantial challenge for supporting the country’s growth
momentum. Current electrification rates are estimated at approximately 47% with the urban electrification rate
of 86% being significantly higher than of the rural electrification rate of 33%. This implies that approximately
60% of the population is not connected to the national grid and is relying on alternative solutions such as diesel
generators and, increasingly, solar systems.
Figure 10: Electrification Rate in Myanmar
100.0% 100.0%
National
85.8%
Electrification
Urban 84.6%
80.0% 77.5%
75.0%
60.0%
50.0%
47.3%
40.0%
Union
33.6% 32.5%
28.0%
20.0%
Rural 14.3%
10.1%
0.0%
2010 2015 2018 2020 2025 2030
Traditionally, about half of the energy used in Myanmar comes from biomass - typically, firewood widely used for
cooking in rural areas. The main forms of modern energy for generating electricity in the country are hydropower
and natural gas, while diesel and gasoline are primarily used for transportation. In some cases, diesel generators
are also used in mini-grids to produce electricity. Hydro power contributes to the largest share of electricity
generation accounting for 55%, followed by natural gas at 42% and coal at 2%, while generation from diesel used
in mini-grids is negligible.
27
Table 7: Sources of Electricity Generation (in megawatt)
Hydro Gas Coal Diesel Total
On Grid 3,221 2,163 120 n/a 5,504

INSTALLED
CAPACITY Off Grid 34 12 n/a 92 138
(MW)
Total 3,255 2,175 120 92 5,642
GENERATION (GWh) 11,190 8,344 451 69 20,055
In July 2019 the Government decided to increase electricity rates by up to 70%. Myanmar’s electricity rates were
the lowest in the ASEAN region and the Government reported a yearly loss of more than USD 300 million on
energy provision. The rate increase aims to provide financial sustainability to the government, and to attract
private investors for mega projects to realise the goals of the Myanmar Energy Master Planxxi.
Figure 11: Electricity Rate Before And After the Increase in July 2019
Domestic Rate Non-Domestic Rate
USD 10 20 30 40 USD 500 1,000 1,500 2,000 2,500
100 Units 1,000 Units
Old New Old New
Source: Ministry of Electricity and Energy, 2019
Although the power sector in Myanmar has traditionally been dominated by state-owned enterprises, several
foreign investors have formed joint ventures (JVs) with the Government, and Power Purchase Agreements have
been signed. Approved investment in oil & gas and power accounts for the highest amongst all sectors at 27%
and 26% respectively. As of September 2019, the oil & gas sector accounted for a cumulative approved FDI of
USD 22.4 billion between 1988 and 2019. This is closely followed by the power sector with approved FDI of USD
21.4 billion as of September 2019.
28
Figure 12: Approved FDI into Myanmar (cumulative from 1988 until Sept 2019)
4% 4%
5%
27%
7%
13%
14% 26%
Oil and Gas Transport & Communication

Power Real Estate
Manufacturing Others
Hotel & Tourism
More information on Myanmar’s energy sector can be found in the dedicated

Energy Guide 2020 on www.eurocham-myanmar.org/publications.
29
6 Manufacturing
With a grow rate of 8%, the manufacturing sector The combination of a large domestic market,
outgrows Myanmar’s economy and accounts for the possibility for exports, a strategic location
more than 20% of the local GDPxxii. The consumer and improved incentives has led to a number of
goods sector is one of Myanmar’s fastest-growing international companies to establish manufacturing
business areas, due to the country’s strong economy, units in Myanmar. Global brands such as Unilever,
increasing purchasing power, and relatively young Carlsberg, Heineken, Coca-Cola, Pepsi, Nissan and
population compared with neighbouring China, Hyundai, and garment brands, including European
Thailand, India, Laos, and Bangladesh. Myanmar’s ones, have encouraged suppliers from China and
proximity to these countries places it within reach of elsewhere to establish manufacturing facilities in
almost 40% of the world’s population, underlining its Myanmar, too.
potential to become a regional trading hubxxiii. Assembling cars in Myanmar becomes increasingly
The government’s national plan for economic growth important, since the Government has high import
includes prioritising export growth, which has led tariffs to stimulate local manufacturing. Ford, Suzuki,
the government to invest heavily in infrastructure Nissan, Hyundai and Kia already have assembly
developments, including roads, hospitals, and power lines in Myanmar, while Toyota is planning to open
stations. This has subsequently begun to attract an assembly line in 2021xxiv. It is expected that car
foreign investors. part supplier companies will follow their customers
In an effort to advance industrialisation, the to Myanmar, and start operations in local SEZs.
Government has created laws and regulations to The foreign interest in Myanmar’s manufacturing
encourage business investment for both local and sector is readily apparent in data on the number
foreign investors. Special Economic Zones (SEZs) in of approved Foreign Direct Investments by the
particular offer lucrative incentives for manufacturing Myanmar Investment Commission. A total of 63.8%
businesses to operate in these areas. Myanmar also of all approved FDI (by number of investments,
aims to become a logistics hub connecting the east not value) were in manufacturing, most of them in
and the west through the development of deep-sea apparel.
ports at all SEZ sites.
30
Figure 13: Number of Manufacturing FDI Approvals
Cumulative number of approved FDI projects

Cumulative number of approved Manufacturing FDI projects
More information on Myanmar’s manufacturing and consumer goods sector can be

found in the dedicated Manufacturing Guide 2020 and Consumer Goods Guide 2020
on www.eurocham-myanmar.org/publications.
31
7 Transport
& Communication
7.1 Logistics Infrastructure

Transportation and communication remain challenges now is in advanced negotiations with a Japanese
in Myanmar. The country recently regressed in the consortium and plans to sign a contract in early 2020.
World Bank’s Logistics Performance Index, moving There are two more international airports in the
from 145 in 2014 to 113 in 2016, before dropping capital Nay Pyi Taw (NYT) and Mandalay (MDL).
to 139 in 2018xxvi. Recognising the need for a better Some foreign companies such as China Road and
transportation system to take advantage of improved Bridge have become more active in road construction,
trade connectivity, the Government of Myanmar has while ports have attracted the likes of Hutchinson
started developing new transportation infrastructure, Ports, which runs Myanmar International Terminals
including a new international airport. The Government Thilawa. In June of 2019, Japanese company Kamigumi
has also started upgrading existing facilities, including Co Ltd. opened the Thilawa Multipurpose International
airports and the rail network. Terminal.
Many more projects are expected to fill current One of the most anticipated projects is for the Yangon
gaps in the transportation system, thereby providing elevated expressway, which is to be the country’s first
foreign investors with the opportunity to engage in modern public-private-partnership road project. The
infrastructure development and/or upgrading existing Ministry of Construction plans to start phase one of
facilities or service provision. the construction in June 2020. It is expected to be fully
Myanmar’s biggest airport is the Yangon International completed by 2023.
Airport (RGN) which has recently been expanded to In September 2019, the Ministry for Investment and
serve over 10 million passengers per year. Projections Foreign Economic Relations signed a framework
indicate that the airport’s full capacity will be reached agreement for a USD 1 billion loan from South Korea
within 4 to 5 years. Therefore, since 2012, the Ministry for economic development cooperation. From this
of Transport and Communications (MOTC) plans to loan, the Ministry of Transport and Communications
open a new international airport called Hanthawaddy will receive USD 45 million for a railway modernisation
International Airport in Bago, 80 km from Yangon. project, and USD 700 million for the rail line project
However, the Government hasn’t yet been able connecting Mandalay with Myitkyinaxxiii.
to find final agreements with private companies.
Initially the project was assigned to a South Korean Other infrastructure project that will start
consortium, which failed to provide the required construction soon, are:
investment. Following that, in 2014, a consortium
A deep-sea port whose final location will be
including Singapore’s Yongnam and Changi Airports
announced in 2020
International and JGC (Japan) has been selected as
Inland ports in Bahmo, Mandalay, Pakkoku,
the preferred bidder for the project, but both parties
Magaway, and Monywaxxix
couldn’t agree on the termsxxvii. The Government
32
7.2 Telecommunication
The telecommunication sector has probably the highest
opportunity for strong growth in the future. While
114% of the population (60.4 million) have a mobile
subscription, only 39% (15 million) use the internet. This
number also represents social media users in Myanmar,
as well as mobile users. The country is therefore a
truly mobile-first market, leapfrogging from a phone
penetration of only 7% in 2012xxx,xxxi.
Table 8: Overview of Mobile Usage and Growth
Percentage of Total number Year-on-year growth 2018 to 2019

population
Mobile Subscriptions 114% 60.4 million +19% (+11 million)
Internet Users 39% 15 million +17% (+3 million)
Active Social Media Users 39% 15 million +17% (+3 million)
Mobile Social Media Users 39% 15 million +31% (+5 million)
Source: Hootsuite, 2019
The local telecommunication market, though growing by 15%, is highly competitive. There are over 140 licensed
internet providers trying to secure market share, and therefore driving profit margins down. Amongst them
are three foreign providers, namely Telenor Myanmar from Norway and Ooredoo from Qatar, both entering
the market in 2014. Most recently in 2018, Vietnam’s MyTel – a joint venture between the Vietnamese Viettel
and the Myanma Economic Corporation – became the third (partly) foreign operator. These three operators
invested a combined amount of USD 3 billion in infrastructure projects. Together with Myanma Posts and
Telecommunications (MPT) they form the market leaders for consumer telecommunication services, in particular
mobile roaming services. MPT used to be the state-owned monopolist before the market was opened in 2013.
Today, MPT is a joint venture which is comprised of the Japanese corporations KDDK Corp. and Sumitodo Corp.,
and the Government of Myanmarxxxii.
Yangon’s 4G coverage is with 80% just behind Bangkok, Singapore, and Jakarta and ahead of capitals from
comparable economies like Malaysia, Vietnam, or the Philippinesxxxiii.
33
Figure 14: 4G Penetration in Asian Capital Cities
0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
Seoul
Bangkok
Singapore
Yangon
Kuala Lumpur
Ho Chi Min
Manila
Source: OpenSignal, 2018
MyTel tested 5G technology in July 2019 and estimates to roll-out the 5G network together with Huawei in 2020.
Prerequisite to offer 5G services is a granted spectrum license by the Posts and Telecommunications Depart-
mentxxxiv.
34
8 Real
Estate
Rapid urbanisation and increasing affluence of
potential buyers is creating opportunities across the
spectrum of real estate businesses. A wide range of
developers have sought opportunities from luxury
condominiums to affordable housing, as well as
commercial and industrial projects. A recent building
boom created opportunities in areas such as building
materials and contracting.
The market is now absorbing the high supply of real

estate and prices are not growing as fast as in other
Asian markets. A growing banking sector is expected
to stimulate the purchase of real estate by Myanmar’s
middle class which finances these with loansxxxv.
The Ministry of Construction has introduced the Condominium Law 2016 and Condominium Rules 2017, and
introduced a management committee in January 2019 to enforce it. In April 2019 the management committee
issued 32 condominium licenses for real estate developers, of which all were issued for Yangon. Other regions
of Myanmar have not yet received licensesxxxvi. Under the Condominium Law 2016 it is possible for foreigners
to own up to 40% of the project, whereas an individual foreigner can only own 25% of the unitsxxxvii. Besides
a purchasing right, foreign companies also have the right to build projects, or form joint ventures with local
companies. The land title ownership for foreigners are limited to the duration of the building’s lifexxxviii.
Portions of several major projects have recently been completed:

Shwe Taung Group’s Junction City project in downtown Yangon opened in 2017, including a retail,
office and hotel componentxxxix
High-end residential project Golden City finished construction in 2017
Downtown office building and shopping mall Sule Square was completed in late 2016xl
Other major projects are moving forward, with prominent examples including:
Yoma Strategic Holding’s landmark downtown property development called “Yoma Central” in
downtown Yangon and luxurious apartments compound “The Peninsula Yangon”xli.
The residential area of Marga Landmark’s luxury compound “The Central” was completed in
September 2019, with commercial areas to be completed nextxlii.
Another recent trend has been toward the so-called “New Cities”, essentially planned city expansions. The most
prominent is in Yangon, with the Yangon New City to be built to the southwest of the current city core. A key part
of the New City is providing jobs, meaning there will likely be a large industrial component as well. Yangon is not
the only city with a “New City” planned, with others including Mandalay planning similar but smaller projects.
35
9 Special Economic
zones
Special Economic Zones (SEZs) were established Kyauk Phyu SEZxliv
to encourage industrialisation, increase trade and
investment, and to create job opportunities for
120 square kilometre project to be developed by
locals. Taxation policy and trade laws are different
a consortium led by CITIC Group Corporation Ltd.,
in SEZs. Laws that regulate economic activity in the
a state-owned Chinese conglomerate taking a
rest of the country do not apply in these areas, such
70% stake, and the Myanmar Government owning
as the Myanmar Investment Law.
30%.
Deep-sea port, industrial and estate area zones.
Currently there are three main SEZs in Myanmar.
Located along the coast line of Bay of Bengal,
One, at Thilawa near Yangon, is partly operational,
close to both Bangladesh and India.
while two more are largely still on the drawing board.
Strategically located near USD 2.5 billion
Myanmar-China Oil and Gas Pipeline.
Thilawa SEZxliii Implementation scheduled in four phases, with
approximately USD 7.2 billion in total project cost.
250 square kilometre project developed by
a Myanmar-Japan consortium (comprised of
Dawei SEZxlv
Japanese entitie Mitsubishi, Maurbeni, Sumitomo,
Japan International Cooperation Agency
(JICA) together owning 49% and the Myanmar 196 square kilometre project developed initially by
government and private sector owning 51%). Myanmar and Thailand, with notable involvement
Near port area, includes industrial and estate area from Italian Thai-Development company (ITD);
zones. Japanese government has expressed interest.
Located 23 km southeast of Yangon city centre Planned to include deep-sea port, industrial zone,
along the Yangon river. power plants and residential area, though will
Zone A (4.05 million square metres) is fully start with a smaller first phase.
developed and hosts 113 companies. Located at the southern tip of the country
Zone B (2.73 million square metres) recently touching the Andaman Sea.
started construction phase 4. 350 km from Bangkok. The SEZ will include a
two-lane road that directly connects the SEZ to
Thailand.
Ground construction work is expected to begin
in 2020.
36
9.1 Rules for

investing in sez
Investors in SEZs are governed directly by the Special Economic Zone Law. As a result, investment permits are
only granted by the management committees of the respective SEZs. For instance, there is a one-stop service
centre located inside Thilawa Special Economic Zone that processes all required licenses and permits on behalf
of relevant government ministries or departments. This service reduces administrative efforts significantly.
Investors who wish to import goods must register a list of materials to be imported with the SEZ management
committee.
Privileges of SEZ:
A free zone investor will be exempted from corporate tax for 7 years starting from commercial operation.
A non-free zone investor (i.e. promotion zone investor) will be exempted from corporate tax for the first 5
years starting from commercial operation.
50% income tax relief on revenue from products sold overseas for the following five years (years 5 to 10)
50% income tax relief on reinvestment obtained from export sales for the following five years (years 5 to
10)
Exemption on customs duty for certain goods (e.g. machinery and vehicles) for the first five years. A 50%
exemption applies for the following five years.
Carry forward loss for five years from the year the loss is sustained.
Investors can either invest in free zones or promotion zones. An investor who exports at least 75% of
production by value is regarded as a free-zone investor and is eligible for tax exemptions for 7 years.
Companies, such as logistics entities that support export-oriented manufacturers, also fall under the category
of free-zone investor. Manufacturing companies that focus on domestic supply are considered promotion-zone
investors and are eligible for 5 years of tax exemption.
The following describes the application process to open a business presence in Thilawa SEZ.
Reserve land with developer, Myanmar Japan Thilawa Development Co.,Ltd.
Apply for investment approval to the regulator, Thilawa SEZ Management Committee with
necessary documents including the location of the land in the SEZ, location of the factory, water supply plan,
electricity supply plan, building/factory construction plan, plan for installation of machinery and equipment and
environmental management plan
Incorporate company at One-stop Service Centre of the Thilawa SEZ (company incorporation shall only be
done after the investment has been approved. Incorporation is a one-day process.)
Undergo additional processes for remaining permits such as application of Environmental Conservation and
Protection Plan, building permit, fire safety certificate, etc.
37
9.2 Types of Businesses

Prohibited to Operate in SEZ
According to the SEZ Law, the following business activities are prohibited from operating in SEZs.
Production, processing of munitions including arms, weapons, explosives for military use, etc., and services
rendering for military-related purposes.
Production, processing or services hazardous to the environment and ecology.
Recycling industries providing waste management services to industries outside Myanmar.
Production, processing of psychoactive substances and narcotic substances.
Importation or production, processing of poisonous chemicals, agriculture pesticide, insecticide and
other goods by using chemical substances, prohibited by international regulations or by the World Health
Organisation, that affect the public health and environment.
Businesses utilising industrial waste imported from abroad.
Production, processing of prohibited substances which may destroy the ozone layer.
Production, processing and sale of goods made of asbestos.
Production, processing of polluted substances hazardous to the human health and environment.
38
10 Ownership of
businesses
10.1 myanmar investment law

The Myanmar Investment Law (MIL) was signed on 18 October 2016 and has been in effect since 1 January
2017. The MIL combines the Foreign Investment Law (FIL) 2012 and the Citizens Investment Law 2013. The new
investment law was created to attract and retain both foreign and local investors by simplifying the application
process and offering tax breaks, incentives, rights and protections for businesses.
Table 9: Myanmar Investment Law - Key Regulatory Amendments
Key Change Description
Ease of Foreign Foreign investors are permitted to own 100% of businesses which are not
Investment on restricted or prohibited lists.
An investor may submit an investment screening application to the

Myanmar Investment Commission (MIC) for non-binding guidance on
whether a proposed investment:
Investment
• Requires an MIC Permit application;
Screening
• Requires Pyidaungsu Hluttaw (Union Parliament) approval prior to a
permit issuance;
• Is prohibited or restricted under the MIL and related notifications;
• Is in a Promoted Sector under the MIL and related notifications.
Devolvement of Applications for investment volumes of less than USD 5 million in non-
Authority for strategic and non-restricted sectors will be handled at the state/regional
Endorsement Application level, with close involvement of the state/regional DICA officials.
Businesses may be granted tax exemptions if investments are in

promoted sectors. The duration of tax exemption is contingent upon the
areas in which business set up operations.
Removal of Blanket
Incentives
• Less developed regions (Zone 1) grant 7 years of tax exemption;
• Moderately developed regions (Zone 2) grant 5 years of tax exemption;
• Adequately developed regions (Zone 3) grant 3 years of tax exemption.
39
Key Change Description
Foreign investors that invest under the Myanmar Investment Law scheme
Long-term Land can lease land from the government for 50 years and then extend it for
another 20 years with two 10-year extensions.
Expropriation of investments is allowed under the following conditions:
Compensation for (a) necessary for the public interest;

Expropriation (b) carried out in a non-discriminatory manner;
(c) carried out in accordance with due process of law;
(d) on payment of prompt, fair and adequate compensation.
MIC will establish and manage a grievance mechanism to inquire and

Grievance Mechanism resolve issues before escalation to legal disputes, and to prevent the
occurrence of disputes.
According to the Myanmar Investment Law 2017, foreign investors can carry out businesses by the following
means:
As a 100% foreign-owned entity.
By way of a joint venture with foreign, local, and government entities.
By way of a mutually-agreed upon contract.
By way of other investment forms, including build-operate-transfer (BOT) and build-transfer-operate
(BTO) systems.
10.2 myanmar
investment commission
The Myanmar Investment Commission (MIC) consists The MIC’s mandate is to act “as Myanmar’s investment
of representatives and experts from government promotion agency; facilitate investment; provide
ministries, departments, and other non-governmental investment policy advice; review incentives; encourage
bodies. They are responsible for approving investment responsible business; and facilitate investment
proposals and issuing notifications regarding sector- grievance mechanism.” The Directorate of Investment
specific developments. and Company Administration (DICA) serves as the
secretariat of the MIC.
40
Foreign companies that register for an MIC investment permit are eligible for tax exemptions and the right to
lease land for 50 years with the option to extend their lease for 10 years two times. Foreign companies that do not
require an MIC investment permit only need to apply for a permit to trade from DICA and a registration certificate
from the Company Registration Office.
On 30 March 2017, the Ministry of Planning, Finance and Industry published Notification No. 35/2017, the final
version of the Myanmar Investment Rules (MIR) issued under MIL2016. The MIR and other Notifications issued
thereafter provide clarifications and information pursuant to MIL2016. They include:
No. 10/2017 on the designation of development zone.

No. 11/2017 on the investment capital amount limit for the issuance of endorsement order.
No. 13/2017 on the classification of promoted sectors.
No. 15/2017 on the list of restricted investment activities.
10.3 list of business activities

not allowed to be carried
out by foreign investors
Table 10: List of Business Activities Not Allowed to be Carried Out by Foreign Investors
No. Types of Investment Industrial Code
ISIC 5813, CPC 3241,

Publishing and distribution of periodicals in ethnic languages including
1 8911, 8912
Myanmar
ISIC 0312, CPC 0421,

2 Fresh water fisheries and relevant services
8615
Establishment of quarantine station for exportation and importation
3 of animals (the Livestock Breeding and Veterinary Department shall CPC 8352, 8359, 8612,
undertake to inspect animals and to issue permits)
4 Pets care service CPC 8351, 86129
Manufacturing of forest products from forest area and government
5 ISIC 0220, 0230
administered natural forest
Prospecting, exploration, feasibility study and production mineral for ISIC 0510, 0520, 0710,
6
small and medium scale businesses in accordance with the Mines Law 0721, 0729, 0990
41
No. Types of Investment Industrial Code

7 Refinement of minerals by medium scale and small scale ISIC 2410
8 Performing shallow oil wells up ISIC 0610
ISIC 5819, CPC
9 Printing and issuing sticker for visa and stay permit for foreigners
89122,91210
10 Prospecting, exploration and production of jade/gem stones ISIC 0990, 3211
11 Tour-guide service CPC 8555

Mini-market, convenience store (Floor area must be below (100 ft.x100 ft.)
12 CPC 62
10,000 square feet or 929 square meters)
10.4 Myanmar
companies law
The new Myanmar Companies Law was approved by former president U Htin Kyaw on 6 December 2017,
later entering into force in August 2018. The new law replaces an older version dating from 1914. The act will
improve corporate governance by allowing:
More flexible capital structures and changes to capital share.

Ability for foreign investors resident in Myanmar to purchase shares on the Yangon Stock Exchange.
Eliminate the requirement for foreign firms to obtain a permit to trade from DICA.
Possibility to incorporate a one-person company with a unique director.
Importantly, foreign investors will be able to hold up to 35% of ownership interest in a Myanmar company; if
foreign stakes constitute more than 35%, the company is considered a foreign company. This will enable foreign
investors to invest in companies in sectors that are currently closed to foreign investors, as well as invest in
companies listed on the Yangon Stock Exchange.
42
11 main regulations
applying to
all businesses
11.1 intellectual
property laws
In 2019, Myanmar has enacted the Trademark In accordance with the Agreement on Trade-Related
Law, the Industrial Design Law, the Patent Law, Aspects of Intellectual Property Rights (TRIPS
and the Copyright Law. Under the new Trademark Agreement), which Myanmar signed with the WTO, the
Law, companies have to register their trademarks Patent Law contains special provisions of exemptions
on a first-to-register basis, in English or Myanmar for patents of pharmaceutical inventions until January
language, but translation have to be provided upon 1 2033, and chemical products used in agriculture,
request. Registered trademarks are valid for ten years microbiological and food products until July 1 2021,
which can be renewed in perpetuity. unless otherwise specified by the Government of
Myanmarxlvi.
Registered industrial designs are protected through
the Industrial Design Law for 5 years, starting
from the day of application. The protection can be
renewed twice for 5 years. The registration is on a
first-to-register basis. The law is designed in a way
that individual employees can register the rights of
designs produced during their tenure, if the employer
does not register the design within six months from
the date of the written notification from the employee.
Inventions are protected by the Patent Law if they are

novel, involve an inventive step, and are industrially
applicable. Patents are granted for 20 years from the
filing date. Patty patents are protected for 10 years.
Patent applications are published after 18 months
from the date of submission. Substantive examination
must be requested within 36 months.
43
11.2 labour-related
rules and regulations
The Ministry of Labour, Immigration and Population is the main regulator and inspector of employment
conditions. It is comprised of the Department of Labour, Social Security Board, Central Inland Freight Handling
Committee, Factories and General Labour Laws Inspection Department and Department of Labour Relations.
An overarching labour legislation or employment code presently does not exist in Myanmar; however, there
are various labour laws that protect minimum standards for employment in Myanmar, including working hours,
overtime, social security, leave, the minimum wage, skills development, child labour, discrimination, labour
disputes and Workplace Coordination Committees and freedom of association. A 2017 guide, produced with the
EU support, is available from the International Labour Organisation.
Employment The Notification 140/2017 of the Employment Skill Development Law from the
Ministry of Labour, Immigration, and Population states that an employment
Contract
contract must be signed within 30 days of employment. The employment contract
must offer minimum levels of protection as stated by the law. Employment
agreements for the appointment of staff must be in accordance with local laws
regarding minimum wages, leaves and holiday entitlements, overtime fees,
damages, workers’ compensation, social welfare packages, 36 insurance and
occupational terms and conditions as contained in the employment agreement.
Provisions which do not meet these minimum requirements are considered void.
After drafting and signing the contract with employees, employers must then send
a copy of the contract to the township or district labour office for approval. The
penalty for violating or failing to sign an employment contract is up to six months
imprisonment, a fine, or both.
A standard contract was published by the Ministry in August following development

in a tripartite process to be used. Some amendments to this are permitted if
approved by the Township Labour Office.
44
Minimum wages In April 2018 the minimum wage was increased to MMK 4,800 (~USD 3.20) per
dayxlvii. Previously, under announcement 2/2015, the minimum wage per hour is
and working hours MMK 450, and the minimum wage for an 8-hour working per day is MMK 3,600
per person (although this did not apply to small comapnies with less than 15
employees).
For blue collar employers, working hours are limited to eight hours per day, 44
hours per week, and six days per week. Adult workers in shops and offices are not
required to work more than 8 hours per day or 48 hours per week.
The Labour Law further states that any person working in excess of legal maximum
hours must be paid double their normal wage. For blue collar workers, overtime
may not exceed 12 hours per week; for employees in offices and businesses,
overtime may not exceed 16 hours per week.
Leave According to the Leave and Holidays Act 1951, employees are entitled to six days
of casual leave, 10 days of annual leave (after their first 12 continuous months of
work), 30 days of medical leave (after six months of work), and an average of 21
public holidays per year with pay. Both casual leave and medical leave are granted
as needed. Employers may require employees to present a medical certificate for
medical leave. The number of official public holidays might vary from year to year.
Social security Employers with five or more employees must participate in the Social Security
Scheme. In accordance with the Social Security Law 2012, monthly contributions
made by the employer and employee are 3% and 2% of the salary respectively.
The Social Security Scheme comprises of the Health and Social Care Insurance
System, Family Assistance Insurance System, Invalidity Benefit, Superannuation
Pension Benefit, Survivors’ Benefit Insurance System, Unemployment Benefit
Insurance System and other social security systems.
Occupational Myanmar has a poor safety culture, and investors will need to train employees
and establish effective monitoring and enforcement to ensure OSH practices
Safety and Health meet international standards. An OSH Law covering all sectors is enacted since
(OSH) March 2019, however the detailed rules and regulations are yet to be drafted by
the Ministry and relevant departments.
45
11.3 taxation
11.3.1 corporate taxation
Resident companies are formed under the Myanmar Company Act and are taxed on a worldwide basis, including
income from sources outside of Myanmar. A non-resident company is any company incorporated outside of
Myanmar and is taxed only on income earned from sources within Myanmar. Representative offices and foreign
branches are regarded as non-resident companies.
Table 11: Corporate Tax by Type of Company
Type of Company Tax Rate
Resident company 25%
Companies under MIL 25%
Foreign companies under special permission in state-sponsored projects,

25%
enterprise, etc.
Non-resident companies 25%
Capital gains for resident companies 10%
Capital gains for non-resident companies 10%
The parliament passes an annual Union Taxation Law. The latest, for 2019, became effective on 1 October 2019.
The Government significantly lowered the income tax on unassessed income to encourage the integration of
unreported or illegal income into the legal economy. In order to provide a degree of tax amnesty, tax rates are as
low as 3% for unassessed income up to K100 million, 5% between K100 million and K300 million, 10% for income
between K300 million and K3 billion, and 30% for undisclosed income of more than K3 billion. Previous income
tax for this category ranged between 15% and 30%xlviii.
The regular income tax rate for corporations is 25%, while companies listed on the Yangon Stock Exchange pay
20% on total net taxable income. Companies located in SEZs or operating in specific sectors might enjoy tax
exemptions or preferable tax ratesxlix.
Table 12: Personal Income Tax
11.3.2 personal From (MMK) To (MMK)

Income
Tax Rate
income tax 1
2,000,001
2,000,00
5,000,000
0%
5%
5,000,001 10,000,000 10%

Personal income is taxed as follows (as long as
income passes the threshold set out in the Union 10,000,001 20,000,000 15%
Taxation Law).
20,000,001 30,000,000 20%
30,000,001 and above

- 25%
46
As amended by Notification 51-2017 beginning 1 April 2017, income tax must be withheld upon making the
following payments at the relevant ratesl:
Table 13: Withholding Tax and Its Applications
Rate if paid to a Rate if paid to

Type of payment
resident a non-resident
Dividends n/a n/a
Interest n/a 15%
Royalties 10% 15%
Payment by state organisations, state enterprises, development

committees, cooperative societies, foreign companies, foreign
enterprises and organisations, local companies and under an existing
2% 2.5%
law for purchase of goods, work performed or supply of services and
hiring within the country under a tender, contract, quotation or other
modes.
11.4 environmental
laws and regulations
The Environmental Conservation Law (No. 9/2012) the project or any activities related thereto”. The
applies to both domestic and foreign investors. This procedure also requires cumulative impacts to be
law from 2012, which led to the creation the Ministry addressed.
of Natural Resources and Environmental Conservation
(MONREC), established a system of Environmental Depending on the nature, size, scope and location of
Impact Assessment (EIA) for the first time, overseen by an investment, there may be a need to undertake a
the Environmental Conservation Department (ECD). full EIA using a qualified consultant registered with
the ECD; or, in the case of a lower-impact activity,
The 2015 EIA Procedure clarifies that ‘environmental an Initial Environmental Examination. In either case,
impact’ includes social impacts. These in turn an Environmental Management Plan (EMP) should
include involuntary resettlement and those relating be established to mitigate impacts. This should
to indigenous peoples. Article 2(h) defines ‘adverse be approved by the MONREC and will become a
impact’ as “any adverse environmental, social, socio- contractual commitment by the company. This leads
economic, health, cultural, occupational safety or to the issuance of an Environmental Compliance
health, and community health and safety effect Certificate (ECC) by the ECD, which then monitors the
suffered or borne by any entity, natural person, project for compliance. Effective public participation/
ecosystem, or natural resource, including, but not consultation, is also essential for responsible business
limited to, the environment, flora and fauna, where due diligence and for building a ‘social licence to
such effect is attributable in any degree or extent to, operate’ is a legal requirement at a number of stages
or arises in any manner from, any action or omission in the process, including publication of relevant
on the part of the Project Proponent, or from the documents and establishment of ‘operational
design, development, construction, implementation, grievance mechanisms’. Draft Myanmar Guidelines
maintenance, operation, or decommissioning of are available on public participation.
47
As of 2018, there were significant delays in EIA According to Article 36 of the MIL and the Invesmtent
approvals by ECD and only few ECCs had been issued. Rules, projects that require an EIA will also require
Furthermore, the quality of many submitted EIAs an MIC Permit because they inter alia have a large
meets neither Myanmar nor international standards. potential impact on the environment and the local
Investors should exercise care with the choice of community. There is therefore a value in submitting
consultants, particularly those offering bargain fees, relevant investments early on to both the Directorate
familiarise themselves with the legal requirements, of Investment and Companies Administration (DICA),
and monitor consultant performance closely. and the ECD for screening as to whether an EIA,
and therefore an MIC Permit, will be required. Even
Prior to the adoption of the 2015 EIA procedure, small investments may require an EIA if they are in an
and the 2016 Myanmar Investment Law (MIL) and environmentally or socially sensitive area including
2017 Myanmar Investment Rules, there was some one affected by conflict.
confusion on the part of the Government and
investors on whether an EIA was a requirement of In addition to EIA requirements, there is a developing
the Myanmar Investment Commission who would corpus of law under the Environmental Conservation
issue approvals. This confusion was resolved with Law relating to environmental standards for all
the adoption of the MIL which makes clear that the investments, regardless of size, including the 2015
two approvals processes are separate and that MIC National Environmental Quality Guidelines, focused
Permits are issued conditional on environmental and on emissions which are largely based on the IFC
other approvals being received from the relevant Environmental Health and Safety Guidelines. There
Ministries. are other environmental laws relating to pesticides,
hazardous chemicals, biodiversity and water
conservation, amongst others.
48
Land laws
Land has constantly been identified by responsible used by different ministries may overlap, conflict,
investors as their biggest human rights risk, and one and not represent current land use patterns. Land
which reduces their willingness to invest in Myanmar tenure remains insecure for most smallholder
due to uncertainty around land ownership and farmers because of:
unquantified liabilities due to land acquisition legacies.
1) A complex and long registration process
Overall, the legal and policy framework regarding
resulting in low land registration rates;
land remains fragmented, internally inconsistent,
2) Eigid land classifications that do not reflect the
and incomplete. Three central pieces of legislation
reality of existing land use;
governing land of particular concern to investors with
3) Lack of recognition of customary land use
a significant land footprint or in rural areas are the
rights;
2012 Vacant, Fallow and Virgin Land Management
4) Leak protection of registered land use rights;
Law, amended in 2018; and the 2012 Farmland Law,
5) Inefficient land administration;
and, the 1894 Land Acquisition Act. The latter two are
6) Active promotion of large-scale land allocations
also under amendment in the Parliament and all three
without adequate safeguards.
are controversial with land users.
A central issue remains widespread insecurity of Further guidance for businesses on this issue is
tenure, partly due to the inefficient and complex included in briefing papers from Myanmar Centre
land registration system. This is further complicated for Responsible Business.
by the fact that the land mapping system is out of
date, meaning that land classifications and mappings
Other regulatory requirements concerning responsible investment
The 2016 Myanmar Investment Law and the 2017

Myanmar Investment Rules include a requirement
(Rule 45) for MIC to publish a Proposal Summary
within 10 days of receiving the Proposal and before it
is considered by MIC.
There is also a requirement for investors (Rules

196/199) for holders of an MIC Permit to publish an
annual report including details of how it has invested
responsibly and sustainably. Other regulations
which relate to responsible investment including law
on Protection of the Rights of Ethnic Nationalities,
Conservation of Biodiversity and Protected Areas, and
Cultural Heritage.
49
12 outlook and
challenges
Since Myanmar underwent significant economic, social and political reforms in 2011, investment conditions for
businesses have become increasingly favourable, thereby attracting increased private investment initiatives that
have contributed to the country’s significant growth. Most projections show Myanmar’s GDP expanding by about
7% per year over the medium-term. However, this depends on sustained private and public sector investment in
infrastructure, in addition to progress and implementation of necessary structural reforms and the development
of needed services.
The following sections summarise important positive and negative factors that potential foreign investors should
consider before establishing businesses in Myanmar.
12.1 outlook
Infrastructure Myanmar’s infrastructure development is a top priority for the ruling party.
improvements gradually To this end, the Government, along with the World Bank and the UN, have
taking place developed a national electrification plan to achieve full electrification by 2030.
Further, the Government has mandated a number of projects to rehabilitate
Myanmar’s transportation infrastructure, which would ease the transportation
of goods and services provided and/or needed by businesses.
Overall, the outlook for infrastructure growth is positive, largely due to the
Government’s demonstrated commitment to developing the infrastructure
sector. For instance, mobile and internet coverage has increased across the
country, SEZ construction is underway, new airports and upgrades in existing
facilities are being carried out, the country’s first elevated expressway is being
planned, and efforts to improve transport connections with the international
community are being implemented. The Government still requires significant
financing to achieve its ambitious infrastructure goals. With support from the
Government, investments in the infrastructure sector can be promising for
foreign partners.
50
Liberalisation of Since 2011, sectors that were previously closed to private participation have
previously closed opened to both local and foreign private investors. Examples include: the Ministry
sectors of Electricity and Energy allowing the private sector to invest in downstream oil
& gas activities; the development of the telecoms sector, which was previously
dominated by state-owned enterprises; allowing private players in the insurance
industry, which was previously monopolised by the state-owned Myanma
Insurance; and granting licences to foreign microfinance institutions to serve the
local market.
The liberalisation of the insurance industry, more opportunities for foreigners

to participate in the local stock exchange, and newly enacted protection laws
are promising policy changes in the favour of foreign investors to participate in
projects and see tangible financial returns.
Mass market and With a population of 53 million people, Myanmar has a strong potential workforce
strategic location to aid in developing fruitful investment opportunities. As a result of its strategic
location as a member of ASEAN and neighbour to China and India, Myanmar is a
regional gateway to international markets and could serve as a regional logistics
hub. Deep-sea ports, investments in over-land infrastructure and new airports will
increase Myanmar’s integration into regional and international trade activities.
Low labour and With a prescribed minimum wage of MMK 4,800 (approximately USD 3) per
production costs day, Myanmar offers investors a large pool of labour at relatively low cost. For
this reason, many multinational companies (MNCs) have established their
manufacturing footprints in the country, either in local market distribution or
foreign market exports.
Furthermore, albeit a significant increase in electricity prices, Myanmar remains
a country with rather low electricity costs in the ASEAN region and worldwide.
The close vicinity to other assembly and raw material hubs like China, Thailand, or
Vietnam, inherit logistical cost advantages for manufacturers’ value-chains.
51
12.2 challenges
Infrastructure needs Infrastructure needs remain a major obstacle for foreign investors in setting up
their business presence in Myanmar and in expanding their established busi-
nesses. Certain fundamental infrastructure elements, such as steady and reliable
electricity supply and good road infrastructure, have yet to be developed. With
frequent power cuts and an inefficient power supply, businesses resort to other
alternative sources of electricity, such as generators. Although major cities are
well-connected, some parts of the network are in need of rehabilitation. Without a
reliable nationwide network, companies are often constrained by high distribution
costs associated with inefficiencies in transporting goods.
Talent shortage Despite a large working-age population, skilled labour is in short supply. The
Myanmar Government defined the education sector as a main priority to
improve. It will take some time, however, until businesses can experience an
increase in educational standards and a larger pool of skilled labour. Until then,
companies themselves have to provide training and develop talent inhouse in
order to get a skilled work-force.
Legislation still in Laws that regulate business operations in the country are not fully functional yet:
progress many laws are outdated and some important laws are not yet based on subse-
quent regulations and detailed rules. The country will have general elections in
November 2020 and it is not foreseeable which party will be voted into power
for the next five years. Depending on the winning party, it is not fully clear if the
current legislative progress will be maintained, or if the country will experience a
political change.
52
13 timeline
Since its independence, Myanmar has undergone numerous waves of political and social change. The following
figure highlights major events in Myanmar’s political evolution.
Figure 15: Timeline of Myanmar’s Political Development

1948
Independence followed by increasing communist
and ethnic insurgencies
1962
Coup d’Etat paving the Burmese way to socialism
1988
Widespread anti-government demonstrations
result in military takeover
1989
Negotiations with ethnic rebels;
Tens of thousands of Karen and other ethnic people
fled to neighbouring Thailand due to escalated
conflicts between the Tadmadaw and Karen Nation
Union (KNU) 1988
General election won overwhelmingly by Aung San
Suu Kyi’s NLD party, but results are not honoured by the
military
2003
Military announced 7-step roadmap to
‘diciplined democracy’
2005
Shift of government to Nay Pyi taw
2007
Saffron Revolution an anti-government protest
movement by monks and others, result in a futher
military clampdown
2008
Cyclone Nargis:
Referendum on new constitution
2010
General election
2011
Civilian government;
100,000 of Kachin people were displaced due
to the resumption of hostilities between the
Tadmadaw and the Kachin Independence Army
(KIA).
2012
By-election
2012 & 2013

Suspension of sanctions
2014
ASEAN chairmanship
2015
General elections
2016
New government
2017
700.000 Rohingyas in Nothern Rakhine fled to
Bangladesh due to the Tamadaw’s military
operations following the ARSA’s attacks.
2018
A monitoring mission from the EU on human rights
and labour right issues visited Myanmar in late
October
53
Independence Myanmar was under the colonial rule of the British for 124 years (1824–1948)
and was occupied by Japan (1942–1945). The country gained independence on 4
January 1948.
Coup d’état paving Myanmar’s post-independence period was characterised by political instability
the Burmese path to and insurgencies of various ethnic and communist armed groups, as well as US-
Socialism supported Kuomintang. Myanmar’s leadership vacuum was eventually filled by
a 1962 coup d’état carried out by the Tatmadaw, Myanmar’s military. General
Ne Win declared the adoption of “The Burmese Way to Socialism”. The country
entered a new era with nationalised businesses and government-imposed price
controls, among other state-driven economic policies. The agricultural sector
suffered heavily from price controls, and the country rapidly lost its position as the
world’s largest rice exporter.
The Government implemented a closed-door economy by taxing exports and

limiting amount of imports allowed into the country. Instead, foreign imports
were substituted by domestic products. Imports were further reduced when the
Government stipulated that imports could only be bought with earnings from
exports. This new law created chaos in the trading sector as export earnings
could not finance Myanmar’s heavy reliance on imports, which partly explains the
country’s underdeveloped industrial sector.
Widespread anti- A nationwide uprising led by university students and others occurred in 1988 and
government was crushed by the military, which took back power from the Burmese Socialist
demonstrations Programme Party and installed the State Law and Order Restoration Council
(SLORC), a military junta. Many protesters were killed during the uprising, and
thousands more were imprisoned or exiled.
Negotiations with In 1989, the military government achieved the first of a series of ceasefire
ethnic rebels agreements with ethnic armed organisations, many of whom had been fighting
for decades.
1990 General elections A multi-party general election was held in 1990 and the National League
for Democracy (NLD) won a landslide victory. However, the results were not
acknowledged by the ruling government, and military rule continued. In 1992,
some elected MPs, outnumbered by delegates handpicked by the military, were
convened to draft a new constitution.
Military announced In 2003, the military regime presented a seven-step roadmap to ‘disciplined
7-step roadmap democracy’ which included adoption of a new constitution and new elections.
to ‘disciplined
democracy’
54
Shift of government to The military regime constructed a new capital at a greenfield site 376 km from
Nay Pyi Taw Yangon, the former capital.
Administrative offices were moved to the new capital, Nay Pyi Taw, in 2005 but
Yangon continues to be the commercial hub of the country.
Saffron Revolution Soaring fuel prices led to public dissent and another uprising in 2007. The protests
were led by thousands of Buddhist monks, giving the uprising its moniker, the
Saffron Revolution. There were several fatalities as the police tried to break up the
protests and many protesters, including monks, were subsequently jailed.
Cyclone Nargis and In 2008, a strong cyclone hit the Ayeyarwady Region. Approximately 130,000
referendum for new people were killed and the country’s agricultural land was devastated. The
constitution Government had scheduled a referendum on a new constitution a few days
after the cyclone hit the region. The new constitution introduced a new political
system with a parliament directly elected by the population, but nonetheless gave
significant power and influence to the military in both the executive and legislative
branches. It also effectively restricted Daw Aung San Suu Kyi, then still under
house arrest, from becoming president. The constitution banned anyone with a
spouse or offspring of foreign nationality from becoming president.
55
2010 General elections Following the enactment of the new constitution, a general election was held
in November 2010 and the military-backed party, the Union Solidarity and
Development Party (USDP), won the majority vote. Daw Aung San Suu Kyi’s party,
the National League for Democracy, boycotted the election. Daw Aung San Suu Kyi
was freed from house arrest one week after the election.
Civilian government In March 2011, former general U Thein Sein, became President in the first civilian
government under the new constitution.
By-elections A by-election was held in 2012 to fill 44 vacant seats in the parliament. Daw Aung
San Suu Kyi entered the election and her party, the NLD, won 43 of the 44 seats.
Suspension of sanctions With Myanmar’s reform period underway, much of the international community
lifted or suspended many trade and economic sanctions against Myanmar. The EU
has lifted all of its sanctions except an arms embargo, while the US has retained
certain sanctions, including a list of individuals linked to the former military
government.
ASEAN Chairmanship For the first time since becoming a member of the ASEAN in 1997, Myanmar
assumed the role of the ASEAN chairman in 2014.
2015 General elections A general election was held in November 2015. The NLD won a landslide victory
and nominated two candidates for President.
New Government U Htin Kyaw was elected president of the new Government. Daw Aung San Suu Kyi
assumed multiple roles in the new cabinet as Foreign Minister, President’s Office
Minister and the newly-created position of State Counsellor. The new Government
took office on 1 April 2016.
The resumption of the peace process is a high priority for the new Government. It
has publicly declared that one of its most important goals is to sign and implement
ceasefire agreements with all ethnic armed groups in the country.
U Htin Kyaw stepped down as president and was replaced by U Win Myint on 30
March 2018.
56
14 industry contact
information
Important contacts and networks for carrying out business in Myanmar are listed below.
Government Offices
There are 22 ministries in the current cabinet. Foreign investors must consult with the Ministry of Commerce,
Ministry of Labour, Immigration and Population, and Ministry of Planning and Finance to set up businesses in
Myanmar.
Ministry of Labour, Immigration and Ministry of Planning, Finance & Industry

Population
Mailing Address
Mailing Address Ministry of Planning, Finance & Industry
Office No. 51, 48 Naypyitaw Office No. 1, 26,32, Nay Pyi Taw
Contact
Contact
(+95) 67 405320
(+95) 1 430 079
(+95) 405 055
(+95) 1 431 010
www.mopf.gov.mm/
www.mip.gov.mm, www.mol.gov.mm
Ministry of Commerce Directorate of Investment and Company

Administration (DICA)
Mailing Address
Nay Pyi Taw Mailing Address
Director General Directorate of Investment and Company
Department of Trade Ministry of Commerce Administration Ministry of Investment and
Office No. 3, Nay Pyi Taw Foreign Economic Relations
No. 1, Thitsar Road, Yankin Township,
Contact
Yangon
(+95) 67 408 265
(+95) 408 485
Contact
www.commerce.gov.mm (+95) 658 102
(+95) 65 103
www.dica.gov.mm
57
Myanmar Business Associations

Non-governmental associations play an important UMFCCI
role in building business networks and facilitating
Mailing Address
business operations. The Republic of the Union of
Myanmar Federation of Chamber of Commerce and No. 29, Min Ye Kyaw Swar Street, Lanmadaw
Industry (UMF- CCI) is the most significant association Township, Yangon.
and is a useful contact when starting a business Contact
in Myanmar. There are 47 affiliated associations (+95) 1 231 434 449
comprised under UMFCCI.
www.umfcci.com.mm
European Business Associations and Partners
British Chamber of Commerce German-Myanmar Business Chamber

Mailing Address Mailing Address
No. 192, Bo Myat Htun Street, Pazundaung No. 84, Pan Hlaing Street, Sanchaung
Township, Yangon Township, Yangon.
Contact Contact
(+95) 1 925 3748 (+95) 9 4506 293 64
www.britishchambermyanmar.com www.gm-bc.com
French Myanmar Chamber of Commerce Delegation of German Industry and Com-

and Industry merce in Myanmar
Times City – Office Tower n°2 – 16th Floor – No. 84 Pan Hlaing Street, Sanchaung Town-
Units 11 & 12 ship, Yangon.
Between Hanthawaddy & Kyuntaw Road,
Contact
Kamayut Township, Yangon
(+95) 9 4506 293 64
Contact
(+95) 9 425 450 546 http://myanmar.ahk.de
www.britishchambermyanmar.com
Chamber of Commerce Italia-Myanmar

Mailing Address
No. 271-273, Bagayar Street, Sanchaung
Township, Yangon
Contact
(+95) 9 45058 2335
(+39) 011 506 1611
www.imybc.it
58
EU Affiliates of EuroCham Myanmar Consortium
Assemble Des Chambres Francaises De Centro Estero Per

Commerce Et D’industrie (Cci France) L’internazionalizzazione S.C.P.A.

46 Av. de la Grande Armée, 75017 Paris, Corso Regio Parco 27, 10152 Torino, Italy.
France.
Contact
Contact (+39) 0 116 700 511
(+33) 1 4069 3831
www.centroestero.org
www.ccifrance.fr
Hungarian Chamber Of Commerce And

Industry
Flanders’ Chamber Of Commerce And
Industry (Voka) Mailing Address
Szabadság Tér 7, 1054 Budapest, Hungary.
Mailing Address
Koningsstraat 154-158, 1000 Brussel, Contact
Belgium. (+36) 1 474 5141
Contact www.mkik.hu
(+32) 2 2298 111
www.voka.be
European Chambers of Commerce
Association of European Chambers of

Commerce and Industry
Mailing Address
No. 19 A/D, Avenue des Arts, B-1000 Brus-
sels, Belgium.
Contact
(+32) 2 2820 850
www.eurochambres.eu
59
Other EU-funded projects
SMEs For Environmental Accountability, South-East Asia IPR SME Helpdesk

Responsibility And Transparency (Smart)
Contact
Mailing Address
(+84) 8 3825 8116
11th Floor UMFCCI Tower, No. 29, Min Ye
Kyaw Swar Street, Lanmadaw Township, www.southeastasia-iprhelpdesk.eu
Yangon, Myanmar.
Contact
(+95) 9 425 328 289
www.smartmyanmar.org
EU EMBASSIES IN MYANMAR
Many EU Embassies are not represented locally in Delegation of the European Union To
Myanmar; some are instead based in neighbouring Myanmar
countries, such as Thailand or India.
Mailing Address
Hledan Centre - Corner of Pyay Road and
Hledan Road, Kamayut Town- ship, Yangon
Contact
(+95) 1 230 56 50
www.euinmyanmar.eu
60
Table 14: List of European Embassies
Country Address Website
No. 109/ B/2, Than Lwin Rd, Bahan, www.mzv.cz/yangon

Yangon
Czech Republic
No. 109/ B/2, Than Lwin Rd, Bahan, www.myanmar.um.dk

Yangon
Denmark
No. 3, Pyay Road, 6 Miles, Hlaing, www.finlandabroad.fi/web/mmr

Yangon
Finland
No. 102, Pyidaungsu Yeik- tha Rd, mm.ambafrance.org

Dagon, Yangon
France
No. 9, Bogyoke Aung San Museum Rd, www.rangun.diplo.de

Bahan, Yangon
Germany
No. 3, Inya Myaing Rd, Golden Valley, www.ambyangon.esteri.it

Bahan, Yangon
Italy
84, Pan Hlaing Street, www.netherlandsandyou.nl

Sanchaung Township, Yangon
Netherlands
Rm 607, 6th Flr, Hledan Centre, www.bangkok.msz.

Kamayut Township, Yangon gov.pl
Poland
No. 607, 6th Fl, Hledan Cen- tre, www.exteriores.gob.es

Kamayut, Yangon
Spain
No. 3, Pyay Road, 6 Miles, Hlaing, www.swedenabroad.se

Yangon
Sweden
No. 80, Strand Rd, Kyaukta- da, www.gov.uk/world

Yangon
United Kingdom
61
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mmtimes.com/news/vehicles-forefront-myanmars-drive-industrial-growth.html (03/10/2019)
62
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xxv
(10/10/2019)
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xxvi
international/aggregated-ranking (10/10/2019)
Myanmar Times (2019): Govt still keen to build international airport in Bago, retrieved from https://www.mmtimes.com/
xxvii
news/govt-still-keen-build-international-airport-bago.html (04/10/2019)
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xxviii
com/news/myanmar-use-us1-billion-loan-infrastructure-projects.html (04/10/2019)
Myanmar Times (2019): Myanmar to pick deep-sea port location next year, retrieved from https://www.mmtimes.com/
xxix
news/myanmar-pick-deep-sea-port-location-next-year.html (04/10/2019)
Hootsuite (2019): Digital 2019 Myanmar, retrieved from https://www.slideshare.net/DataReportal/digital-2019-myanmar-
xxx
january-2019-v01?from_action=save (04/10/2019)
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xxxi
business/technology/21466-ministry-puts-mobile-penetration-at-90-percent.html (31/10/2019)
Frontier Myanmar (2019): After the gold rush, fierce competition in Myanmar’s telecoms sector https://frontiermyanmar.
xxxii
net/en/after-the-gold-rush-fierce-competition-in-myanmars-telecoms-sector (23/10/2019)
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xxxiii
com/news/telecommunications-sector-bright-spot-economy-2018-19.html (18/10/2019)
Myanmar Times (2019): MyTel anticipating 5G rollout next year if granted licence, retrieved from https://www.mmtimes.
xxxiv
com/news/mytel-anticipating-5g-rollout-next-year-if-granted-licence.html (04/10/2019)
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xxxv
com/news/property-market-myanmar-expected-stay-flat-till-2020.html (03/10/2019)
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xxxvi
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xxxvii
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xxxviii
com/news/property-investments-now-more-clear-cut-foreigners.html (03/10/2019)
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xxxix
frontiermyanmar.com/projects/junction-city-phase-1-complete (11/10/2018)
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xl
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xli
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xliv
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xlv
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xlvii
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63
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BUSINESS GUIDE 2020

With a strong, growing network of partners, EuroCham

This report serves as a guide for European small-to-

Please contact us for further information and support.

Yangon, November 2019

Legal advice Bookkeeping and accounting

Luther Law Firm Limited | Luther Corporate Services Limited

Legal and Tax Advice | www.luther-lawfirm.com | Corporate Services | www.luther-services.com

7. Transport & Communication 31

9. Special Economic Zones 35

10. Ownership of Businesses 38

11. Main Regulations Applying to All Businesses 42

12. Outlook and Challenges 49

14. Industry Contacts Information 56

Table 1 Key Facts About Myanmar 10

Table 5 Companies Listed on the YSX 23

Figure 1 Map of Myanmar 9

Figure 4 Real GDP Growth And Contribution to Real GDP 14

AEC ASEAN Economic Community

FIL Foreign Investment Law

The voice of European business

ADVOCACY BUSINESS SERVICES EVENTS

European Chamber of Commerce in Myanmar

+95 9 45058 2335

Figure 1: Map of Myanmar

Regular Road Tanintharyi

Port (planned/under construction)

Table 1: Key Facts About Myanmar

Official Name Republic of the Union of Myanmar

Population 53.0 million (as of 2019)

Capital Nay Pyi Taw

GDP USD 71.21 billion (2018)

Currency MMK (Kyat)

Top Export Items Natural Gas, Garments, Agricultural Products

Source: IMF-World Economic Outlook Database, 2019

Figure 2: Myanmar’s Total Population 2005–2024 (in million)

Figure 3: GDP and Demographic Trend by States And Regions

Yangon 7.9 Chin 63

Mandalay 6.4 Rakhine 254

Ayeyarwaddy 6.3 Ayeyarwaddy 381

Shan 6.2 Kayin 698

Source: Central Statistical Organisation; Myanmar Development Institute, 2019

Table 2: Macroeconomic Benchmarking – ASEAN

Population Current GDP GDP / Capita GDP Growth

Indonesia 261.9 1,022.4 3,870.6 5.2%

Philippines 106.6 330.8 3,103.6 6.6%

Vietnam 94.6 241.2 2,551.1 6.6%

Thailand 67.8 487.2 7,187.2 3.6%

Myanmar 52.8 68.6 1,297.7 6.8%

Malaysia 32.4 354.3 10,941.8 4.8%

Cambodia 16.2 24.5 1,508.8 6.6%

Laos 6.8 18.4 2,720.3 6.7%

Singapore 5.6 361.1 64,041.4 2.6%

Source: IMF-World Economic Outlook Database, 2019

Figure 4: Real GDP Growth And Contribution to Real GDP

5 3.5 3.2 2.7 2.9

The fiscal year 2018/19 marks a transition year, as the

Figure 5: Industry Growth Contribution by Sector

Manufacturing Construction Others

Source: Asian Development Bank, 2019

Figure 6: MMK Inflation Rate

Source: International Monetary Fund, 2019

Figure 7: Currency Exchange Rate Development Between MMK and USD/EUR

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